What is Planning Process and Explain its types

The process of planning includes the determination of objectives and outlining the future actions that are needed to achieve these objectives. Various steps that are followed in the process of planning are:

(i) Identifying the problem: It involves the identification of the aim for the fulfillment of which the plan is being formulated. If a new plan is require or the modification of an existing plan could help in achieving these aims.

(ii) Gathering information about the activities involve: An effective plan needs complete knowledge of the activities involved and their effect on other external and internal activities.

(iii) Analysis of information: This information is then analysed minutely and the information related with similar subjects is classified so that similar type of data can be kept together.

(iv) Determining alternate plans: There are alternate plans available for the achievement of the objectives and ingenuity and creativeness are required as some plans are also developed at this stage.

(v) Selecting the plan: At this stage the plan which is acceptable to the operating personnel is proposed. The adaptability and the cost of the plan are also taken into consideration.

(vi) Detailed sequence and timing: Detailed like who will perform which activity under the plan and the time within which the plan should be carried out is determining in this step.

(vii) Progress check of the plan: The provisions are made for the follow up of the plan as the success of any plan can be measured by the results only.

Planning Process – Types of the Plans
1. Planning Hierarchy
The concept of the feeling of the plans at the different hierarchical levels can be understood a great deal with the help of the planning hierarchy. Here the different plans are treated as the hierarchy, involves going towards the lowest hierarchical plan from the broader hierarchical plan. The planning hierarchy mainly consists of the following type of the plans –

1. Business plans – These types of the plans include whole of the business.

2. SBU plans – These plans act as the strategic business unit plans including the business units.

3. Corporate Plans – These plans act as the plans of the organization involving its activities. It is the total plan for the whole organization, a corporate body working as a functional unit. The complete unit is covered under such plans.

4. Departmental plans – These plans are also referred to as the functional unit plans and cover the branches, the projects, the departments, the units that are separated for the functional efficiency.

2. Conceptual planning
Provides some type of the guidance for the planning but the major drawback in this type of the planning is that the planning unit is not at all visible, whose presence is very much critical in the planning. The conceptual planning must consist of the following –

1. Policy – One time decision i.e. usually effective for a length of the time.

2. Objectives – Focus direction of an achievement and the general outcome.

3. Goals – Very well defined quantitative or the numerical objectives by the end of a particular period with the plan. The practical orientation to the implementation of the plans is obtained here.

4. Procedures – Process rules that are carrying out the action.

5. Rules – Fixed direction unless expressly revised.

6. Budgets – Plans converted to the quantities and in the terms of the money having the feature of the interpretation in the statistical and the accounting terms.

7. Vision Statement- The statement includes the purpose operating for the future and then to take the others in the vision fold of the organization.

8. Mission – The purpose of offering the goods and the services in the terms of the beneficiary.

9. Variable plans – In order to satisfy the different types of the contingencies, it is a necessity to draw different types of the plans. The variations may include drawing a realistic plan and then following this step by the preparation of an optimistic and pessimistic plan.

3. The Plan document
For getting a planned document, all the above steps are performed and during this, one particular thing to kept in mind is that the plan must start with the broader objectives and must be linked stepbystep to the actionable and the implementation activity. The plan document must consist of the following –

a. Premising – This step is needed at the each stage of the planning. Before undertaking the plan, the strength, the weakness, the opportunity and the threats (SWOT) can be calculated depending on the premises.
b. Vision – The way in which we visualize our future.
c. Mission – What we aim to deliver to the beneficiaries.
d. Policy – What restrictions on means we will note during the execution of the plan.
e. Objectives – What we will keep as the broad directions for the achievement.
f. Goals – Translate the objectives into the quantitative and the financial goals, which can be achieved by the operational people.
g. Procedures – To prioritize and then draw the sequence of the action.
h. Budget – Convert to the money terms in order to establish the standards for the evaluation.

4. The program
Whenever any activity is carried out, it is carried out to achieve one thing or the other. But the results that one expects to be obtained must be achieved in the proper frame of the time, so that they can be used at the right time for various other activities. Hence, in order to get the results within the certain time frame, a program is drawn.

The projects of the diverse nature within a subject are included in the program. The program is actually a clubbing together of the things and for getting a good view of the word program, it can be understood as the plan document on a much wider scale than the planning document.